NASDAQ futures are coming into Friday gap down after an overnight session featuring normal range and volume on a balanced session that held the upper quadrant of yesterday’s trend day. At 8:30am Consumer Price Index came out slightly higher than expected.
Also on the economic calendar today we have U. of Michigan Confidence at 10am and Baker Hughes rig count at 1:00pm.
Yesterday we printed a trend up. Price opened gap up and drove higher, briefly resting during the lunch period before continuing to campaign higher prices.
Heading into today my primary expectation is for buyers to close the overnight gap up to 4814 then take out overnight high 4814.25 setting up a move to target the open gap up at 4829. We stall here, just ahead of the swing higher before two way trade ensues.
Hypo 2 is everything mentioned in Hypo 1 except we continue working higher, up through 4839.50 to make a new higher into the weekend.
Hypo 3 sellers push down through overnight low 4793.50 triggering a liquidation down to 4780.25 before two way trade ensues.
Hypo 4 full on liquidation. Sellers sustain trade below 4780 setting up a move to target 4750 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
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